Electricity Asset Management Plan 2019-2029
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Vector Limited://
SECTION 3. ASSET MANAGEMENT SYSTEM
PROVIDING A SAFE, RELIABLE AND RESILIENT NETWORK
Vector’s asset management system is used to guide all aspects of the investment decision-making process. The system sets the foundation to meet the Networks’ business purpose to provide a safe, reliable and affordable network that provides a high-quality customer experience as we deliver with urgency on our promises to customers, in support of Vector’s vision to Create a New Energy Future . While this section provides insight into Vector’s asset management practice across its range of assets, for the purposes of this AMP it is limited to the Auckland region’s local electricity distribution networks that includes assets such as poles, cables, transformers and substations that take electricity to the consumer’s point of supply. The asset management system is designed to manage this growing suite of assets and make the best use of them for the benefit of Vector’s customers and stakeholders. As the rate of new technology adoption by our customers increases and their behaviours and expectations change accordingly, new challenges are created from an asset management perspective. The way electricity flows around the network is changing as customers adopt new technologies to manage their energy costs and reduce their carbon footprint. This increases investment uncertainty, since the changing electricity generation, storage and consumption patterns could result in assets that are either underutilised or redundant in the long term. Our stated objective to provide a safe, reliable and resilient network, that is affordable and drives investment decisions that are in the long-term interest of consumers. New technologies for asset management purposes have also become more economically viable and is key to manage the increasing uncertainty and new challenges we are facing. Piloting new technology options and deployment new technology alternatives where proven in the long-term interest of customers are baseline practices of a reasonable and prudent operator responding to changes in customer behaviours, needs and expectations. As such Vector’s Asset Management practices will increasingly rely on a growing investment in smarter connected hardware and Information systems. Associated new investment in the data including the capture, transmission, storage, security and governance, is also needed to support these systems. For example, the need for Cyber security and information management disciplines is increasing as the threats increase as do community and regulatory requirements. The continuous improvement of the Asset Management systems, practices and policies is important to Vector. Service Level performance reporting focuses our continuous improvement actions on what is required to target our service-levels and turn the dial on our Asset Management maturity. 3.1 ASSET MANAGEMENT VALUES AND OBJECTIVES Vector’s asset management policy is the overarching governance document that defines the principles and objectives that guide all aspects of our network asset management practice. These principles and objectives accord with our corporate values and align with our corporate vision and mission. Vector is committed to ensuring a safe, reliable and resilient electricity network. Our aim is that is affordable for the long term benefit of all our customers. This commitment is demonstrated through the principles and objectives that we apply in managing our network assets. • We are committed to Safety Always with safety being a key focus of how we design, develop, deliver and service our assets over their entire lifecycle. Safety Always extends not only to our employees but also to our contractors and the public • As a regulated provider of distribution network services, we aim to comply with all applicable statutory and regulatory obligations and draw on good asset management practice to achieve and maintain this compliance • We manage the impact of our asset management practices to ensure fairness, affordability and equity of prices and by ensuring our decisions don’t burden future generations • Enabling Auckland’s growth and delivering returns set by the regulator to our shareholders and choice to our customers is at the core of our business and we maximise the value that our assets deliver across their entire lifecycle through the use of customer insights, technology, good practice asset management, risk management and sound asset investment decisions underpinned by good governance
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